Vermont hospitals have emerged from the recent surge in coronavirus in a much weaker financial position than before the pandemic, submissions to state regulators indicate.
Most hospitals, including the state’s largest hospital, will end this year, which operates until September 30, by losing normal operation. In summary, Vermont hospitals expect a $ 63 million deficit.
About 70% (about $ 43 million) comes from the University of Vermont Medical Center in Burlington.
Berlin’s Central Vermont Medical Center, which is part of the same network that operates UVM Medical Center, is forecasting a $ 13.5 million deficit.
The state’s second-largest hospital, the Rutland Community Health Center, estimates $ 12.5 million in surgical losses this year.
Hospital leaders cited shortages, rising inflation, and excessive reliance on expensive travel staff as reasons for the deficit. Most people are asking the Green Mountain Care Board, the agency that regulates the growth of hospitals in Vermont, to make a significant budget increase next year to make up for the sudden loss this year.
In anticipation of the assessment request, Careboard set the hospital’s two-year growth target at 8.6%. This is well above the normally approved 3.5%. However, most hospital proposals exceeded that threshold.
Rutland Regional has demanded a 16% increase in its current budget. This is an increase of nearly $ 44 million for fiscal year 2023 starting October 1. Health insurance costs for those populations.
A request for a 10% increase in the University of Vermont Medical Center is equivalent to an additional $ 150 million in fiscal year 2023. Burlington’s 562-bed medical center is a regional hub for complex healthcare and medical resident training.
This year’s budget inquiry will begin in mid-August. The board will determine the budget for each hospital by September. In the discussions considered by the board, consumers typically consider purchasing commercial insurance for hospital executives.
Hospital executives often argue that more money is needed for facility repairs and critical services, and often warn that budget cuts lead to painful cuts in services.
Consumers, on the other hand, are worried that insurance prices will go down and they will have to pay money without having to pay for medical expenses.
The two factions are particularly at odds this year as inflation spikes consumer living costs. The same pressures affect hospital finances, but unlike previous years, Vermont hospitals do not expect state or federal assistance to save them.
Most hospitals are aware that Covid will receive little or no assistance in fiscal year 2023, but the shockwaves from the previous surge continue to affect their budgets. According to some forecasts, this fall could bring another big wave of Covid, but budget forecasts show executives aren’t expecting significant help.
The exact way the board balances these competing needs will be determined within next month or two months. In any case, this year’s budget season is especially important for both hospitals and consumers.
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